Did you know that India is now the world’s 3rd largest startup ecosystem? It has more than 1.59 lakh start-ups that are recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as of January 15, and the future for Indian startups looks brighter than ever.

Sharing his thoughts about Startups in Tamil Nadu on National Startup Day 2025, Srivats Ram, Chairman, CII Tamil Nadu, in a press release, gave his opinion on Startups’ role in the Journey of USD 1 Trillion by 2030 – one of the major aspirations of the Tamil Nadu Government. 

Tamil Nadu, one of India’s fastest growing states, stands out as a leader in fostering innovation and entrepreneurship. It contributes 9% to India’s GDP despite constituting just 6% of the population and occupying 4% of the landmass, he said.

The state’s GDP growth is backed by a robust startup ecosystem, which has witnessed an exponential rise in recent years. The number of registered startups in Tamil Nadu grew from 2,300 in March 2021 to over 10,000 in December 2024, achieving a milestone in entrepreneurial activity.

Key factors underpinning this growth include Tamil Nadu’s leading position in education, innovation, and industrialization. The state boasts India’s highest number of top-ranked educational institutions, producing over 1.3 million graduates annually, including more than 200,000 engineers. The skilled talent pool ensures a steady supply of innovative minds and workforce for startups.

Tamil Nadu is home to more than 120 incubators, the highest in any Indian state, fostering innovation and entrepreneurship. Initiatives such as the IIT Madras Research Park, with over 350 startups incubated and 1,300 patents filed, underline the state’s commitment to nurturing cutting-edge technology.

StartupTN, a state government mission, has created 9 regional hubs and a metro hub in Chennai to catalyze startup activity. These hubs provide access to resources, funding, mentorship, and incubation support. Tamil Nadu’s Startup Policy 2023 aims to establish 15,000 startups and position the state among the top 20 global startup destinations by 2032.

Tamil Nadu leads India in patent filings in the Deep Tech Sector, with 9.3% of the nation’s total in 2023. Startups like Agnikul Cosmos are making global waves, as evidenced by its semi-cryogenic 3D-printed engine launch in 2024.With Chennai already considered India’s SaaS capital, hosting major events like SaaSBoomi, Tamil Nadu’s SaaS sector benefits from cost efficiency and a highly trained workforce, drawing significant investments and talent.

With initiatives like the Tamil Nadu Fintech Policy 2021 and a developing Fintech city in Chennai, the sector has seen notable success stories, one being the example of Yubi which is being valued at over $1.5 billion.Tamil Nadu’s Digital Agriculture Mission uses drones and AI for soil health management, showcasing innovative solutions for sustainable agriculture too, showing that the Innovation and Startups Ecosystem of the state goes beyond just the tech sector.

Tamil Nadu offers unparalleled policy support through initiatives like StartupTN, which manages funding schemes such as TANSEED and the TN Emerging Sector Seed Fund. The state’s Single Window Portal ensures ease of doing business, with time-bound approvals and grievance redressal mechanisms. Startups aim to benefit from planned investments in digital infrastructure, including the development of a fiber optic network intended to cover over 12,000 villages.

The government’s proactive stance includes simplifying tender processes, enabling startups to offer innovative technology solutions. Additionally, programs like the Naan Mudhalvan scheme bridge skill gaps, ensuring workforce readiness.

Confederation of Indian Industry (CII) Tamil Nadu plays a key role in bolstering the state’s startup ecosystem. Annual initiatives like CII Connect,CII Tamil Nadu Startup Summit, and CII Thrive bring together stakeholders to foster innovation and entrepreneurship. The summit has also highlighted the importance of educational reforms and policy advocacy for mitigating financial risks and promoting employment.

Tamil Nadu’s startups are poised to be the engine of its economic growth, contributing significantly to job creation, innovation, and exports. The state’s focus on fostering high-growth sectors such as deep tech, SaaS, and fintech will ensure sustained economic impact.

As Tamil Nadu marches towards its $1 trillion economic vision by 2030, the thriving startup ecosystem will play an integral role in realizing this ambition. With continued government support, a skilled workforce, and a culture of innovation, Tamil Nadu is set to emerge as a global leader in entrepreneurship and economic development.